Legal Question in Credit and Debt Law in Indiana

Bankruptcy and my finances

I am in a real financial bind. I owe approx $19,000 and I only bring home 20k/yr before taxes. I am on the verge of being taken to court over one of my past due accts and Its going to be awhile before I can save up to file for chapter 7. Is there anything that I can do to keep them from taking me to. I don't have the money to pay them.

Also, if I dont go to the court hearing, what will happen?


Asked on 11/12/07, 8:34 pm

2 Answers from Attorneys
Martin Hancock MARTIN HANCOCK

Re: Bankruptcy and my finances

Filing bankruptcy will completely stop the case and discharge the debt. You said you dont have enough money to file yet, thats ok, my firm, as well as others, offer payment programs. If you are going to discharge the debt, there is no need to file an answer or go to court on the case. The court will award a default judgment against you, then its up to the creditor to try to collect it from you.

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Answered on 11/12/07, 10:09 pm
E. Brian Davis Davis Law Office

Re: Bankruptcy and my finances

At a minimum, if you have not already done it, you should seek a free initial consultation from a bankruptcy lawyer. The lawyer may be able to slow things down enough for you to get enough money to file a bankruptcy.

I have sometimes had clients who needed to file RIGHT NOW who were able to borrow money on a short term basis from a friend or relative. While the debt to the lender is legally discharged by the bankruptcy, nothing prohibits you from voluntarily paying it back after filing.

ALSO, it costs very little to file a Chapter 13 bankruptcy, which can be converted to a Chapter 7 if the plan fails.

Good luck.

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Answered on 11/12/07, 11:37 pm


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